LEARN HOW TO TRADE THE MARKET

It's crucial to educate yourself before you wade into any type of investment or investment strategy. This beginner's guide to online stock trading will give you a starting point and walk you through several processes: choosing a discount broker, the 12 types of stock trades you can make, how to select individual stocks, uncovering hidden fees, expenses, and commissions, and much more. rjl domino

If you haven't already opened a brokerage account with a respected stock broker, do it now. Read our guide to choosing a stockbroker and open an account so you can begin trading stocks. Also, note that there is a difference between a prime brokerage and other brokers.

Twelve types of trades are available when you begin online stock trading. They include the market trade, limit trade, stop loss, day orders, good-till-canceled trades, trailing stops, and bracket trades. Walk through this step-by-step guide to stock trading and find a definition and example for each of these terms.

03 How to Avoid Frictional Expenses That Can Destroy Your Stock Trading Profits

The biggest enemy of successful stock trading is something Warren Buffett calls frictional expenses. They represent money you're shredding without any benefit to you. What are frictional expenses? Commissions and fees are a good example. Learn how to avoid them.

If your stock trading brokerage account is for speculation and you want to roll the dice, you can actually borrow money from your brokerage firm. This is known as trading on margin. You can leverage your positions up to 3-1 in certain situations. This approach to trading stocks has some big potential pitfalls you'll have to guard against, however.